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As of 1 February 2020, the United Kingdom is no longer a member of the European Union. Initially nothing will change for citizens and businesses, because a transition period will apply until the end of 2020. Our dedicated Brexit page includes important information on Brexit in the areas of financial markets, customs, budgetary issues and taxation.

On 9 October 2019, the German federal cabinet approved the federal government’s Climate Action Programme 2030, which represents a step towards implementing the Climate Action Plan 2050. The aim is to ensure that Germany meets its climate policy targets. The extensive programme includes measures for all sectors. Progress will be reviewed on an ongoing basis. The Finance Ministry is responsible for financing the programme as well as for various fiscal measures.

Federal Minister of Finance Olaf Scholz is responsible for all aspects of German fiscal and tax policy and determines the broad outline of budgetary policy. In performing these functions, he is supported by two parliamentary state secretaries and four permanent state secretaries.

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How is Ger­many prepar­ing for Brex­it?

Brexit

As of 1 February 2020, Brexit is reality: the United Kingdom is no longer a member of the European Union. Initially nothing will change for citizens and businesses, because EU law will generally continue to apply in and to the UK during a transition period until the end of 2020. However, the UK will no longer have a say within the EU’s institutions. The UK will also remain part of the European single market and customs union during this period.

Negotiations on the future relationship between the EU and the UK are expected to begin in early March. Before negotiations can start, the 27 EU member states must agree on a negotiating mandate for the European Commission. Initial discussions on the mandate have already begun, and the Council of the EU is expected to adopt the mandate at the end of February.

Since summer 2016, the German government has been preparing intensively for Brexit, which was supported by a majority of voters in the British referendum on 23 June 2016. Throughout this process, the German government worked on the assumption that an orderly Brexit would be achieved. The German government is coordinating closely on preparations for Brexit with its European partners and the European Commission to ensure that the measures needed at the EU level and the national level are dovetailed. It also regularly reports to the German Bundestag and the Bundesrat on the status of legislative and other preparations.

Our dedicated Brexit page includes important information on preparations for Brexit in the areas of financial markets, customs, budgetary issues and taxation.

The
Agree­ment on the with­draw­al of the Unit­ed King­dom of Great Britain and North­ern Ire­land from the Eu­ro­pean Union and the Eu­ro­pean Atom­ic En­er­gy Com­mu­ni­ty
[pdf, 3MB]is a 585-page document that lays down the arrangements for the UK’s withdrawal from the EU. It includes central issues that are particularly important to the German government. For example, it provides comprehensive protection for the rights of EU citizens living in the UK as well as British citizens living in the EU: they can continue to live, work and study in the UK and in the EU respectively, while also enjoying the benefits of a social security system. It also makes provisions for the UK’s financial obligations. Furthermore, the Withdrawal Agreement safeguards the open border between Ireland and Northern Ireland and, with it, the hard-won peace achieved 20 years ago. In line with the European Council’s guidelines, the European Court of Justice will be given an important role in monitoring and implementing the Withdrawal Agreement. In addition, the Agreement puts in place a transition period until the end of 2020 (renewable once, by a maximum of two years), which will leave time to negotiate the nature of future UK-EU relations. The transition period set out in the Withdrawal Agreement will be used for formal negotiations on post-Brexit UK-EU relations based on the Political Declaration.

Because the original Withdrawal Agreement failed to win approval in the British parliament three times, the European Council, in agreement with the UK, extended the deadline for withdrawal to 12 April 2019 and then to 31 October 2019.

As of 1 February 2020, Brexit is reality: the United Kingdom is no longer a member of the European Union. Initially nothing will change for citizens and businesses:

The Withdrawal Agreement provides for a transition period until 31 December 2020, during which time EU law will essentially continue to apply to the UK. The UK will also remain part of the European single market and customs union during this period.

The EU’s freedom of movement – in other words, the right to live, work, study or have social security coverage in the EU and the UK – continues to apply in full during this period.

Under the Withdrawal Agreement, the transition period can be extended once, by up to two years. The decision on this must be taken by 1 July 2020. The transition period ensures that individuals and businesses have the planning certainty they need.

The Withdrawal Agreement also creates legal certainty in important areas for the time after the transition period ends, i.e. from 1 January 2021 at the earliest.

It provides comprehensive protection for the rights of EU citizens living in the UK, as well as British citizens living in the EU, for the lifetimes of the individuals concerned: they can continue to live, work and study in the UK/EU while also enjoying the benefits of a social security system.

The special arrangement for Northern Ireland guarantees the integrity of the EU single market; at the same time, it ensures that there will be no controls at the border between Ireland and Northern Ireland and that the Good Friday Agreement remains fully in force. The Protocol provides that Northern Ireland will remain part of the UK’s customs territory but that all relevant rules of the EU single market will apply in Northern Ireland, as will the Union Customs Code. The checks and collection of customs duties this entails will take place at the entry points to the island of Ireland in Northern Ireland.

In addition, the UK’s financial obligations towards the EU are also laid down in the Withdrawal Agreement.

The EU and the UK will make intensive use of the transition period to negotiate their future relations. The EU wants to continue having a close partnership with the UK.

Negotiations on the future relationship between the EU and the UK are expected to begin in early March. Before negotiations can start, the 27 EU member states must agree on a negotiating mandate for the European Commission. Initial discussions on the mandate have already begun, and the Council of the EU is expected to adopt the mandate at the end of February.

The Political Declaration defines the framework for negotiations on the future relationship between the EU and the UK. The Declaration essentially provides for a partnership in the areas of economic and security policy.

The European Commission answers the most important general questions relating to Brexit on its website:

What is included in the Common Provisions of the Withdrawal Agreement?

What has been agreed on citizens’ rights?

What has been agreed on separation issues?

What has been agreed on the governance of the Withdrawal Agreement?

What has been agreed regarding the financial settlement?

Protocol on Ireland / Northern Ireland

What has been agreed regarding the Sovereign Base Areas in Cyprus?

Within the German government, the Federal Foreign Office is the lead ministry on Brexit. Its dedicated Brexit page has an overview of the most important Brexit issues.

More specific Brexit information

The following websites provide more detailed information about Brexit and about the preparations that are important to make:

The German Federal Financial Supervisory Authority (BaFin) answers frequently asked questions on Brexit. The information is particularly relevant for UK banks and insurers that would like to open branches or establish subsidiaries in Germany, as well as providers and issuers of securities

The Deutsche Bundesbank provides information relating to banking supervision, i.e. for financial institutions that may want to reconsider their location strategy. The Bundesbank has also set up a dedicated phone number for financial institutions affected by Brexit.

The German customs administration provides Brexit-related information regarding legal repercussions in the context of the enforcement of intellectual property rights and the necessary customs measures.

A number of professional organisations in Germany have given advice regarding the UK's withdrawal and related issues. The Federation of German Industries (BDI) has published extensive information on the consequences of Brexit for business.

In the area of financial services, many industry associations have prepared comprehensive information relating to their respective sector. For example, the German Insurance Association has published a position paper on future economic relations between the EU and the UK.

At the European level, the European Central Bank is committed to providing information to banks and interested parties about its supervisory expectations. A dedicated page on relocation to the euro area answers frequently asked questions (FAQs) about the ECB’s role in supervising euro area banks.

With regard to chemicals legislation, the European Chemicals Agency (ECHA) has published comprehensive information on the impact of Brexit in this area, in particular on the EU's REACH regulation.

At the European level, the European Medicines Agency (EMA) provides guidance to help pharmaceutical companies responsible for both human and veterinary medicines prepare for the United Kingdom’s withdrawal from the EU.